COMPARATIVE EVALUATION OF FINANCING SMALL AND MEDIUM FARMS IN UKRAINE AND SLOVENIA

Štefan Bojnec, Sergii Kvasha, Olena Oliynyk

Abstract


The paper analyses the place of small and medium sized enterprises/farms (SMEs) in agriculture in Ukraine and Slovenia. The focus is on the comparison between financing SMEs and their contribution in outcomes of agriculture in Ukraine and Slovenia. Identification of problems of access to finance of SME shows that in Ukraine are high level of interest rate, lack of collateral, lack of credit history, insufficient understanding of agricultural production by commercial banks and they cannot properly assess the risk related to agribusiness and the banks increase their interest rates to cover for the risks and so on. In Slovenia among sources of financing of gross investment in new and existing fixed assets a crucial role plays own financial and joint assets, and from assets of funds and without compensation of fixed assets. The prevailing family farms in Slovenian agriculture are in lower degree engaged in financial credits and leasing. The financial constraints in the Slovenian agriculture are mitigated by special institutions and European funds, which provide loans and grants for investment. The main ways of improvement of access to finance SMEs in Ukraine have been determined the development credit cooperative system and implementation of credit guarantee scheme for SMEs.

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